US Government Shutdown Ends After Record 43 Days

By ariachiang

2025-11-13

The U.S. government shutdown, which lasted 43 days starting in early October 2025, finally ended following a congressional vote on November 12, marking the longest shutdown in U.S. history. The closure delayed the release of key data for October and early November, including employment, inflation (CPI, PPI), and consumer spending. Market expectations for annual GDP growth have been slightly revised down from 0.8% to 0.7%. According to the White House Council of Economic Advisers, consumer spending in October alone dropped by about USD 30 billion due to the shutdown, while the unemployment rate may temporarily rise from 4.3% to 4.8%.

The shutdown stemmed from deep partisan divisions over the FY2025 budget bill, with disputes centering on Medicaid funding, border policy, and spending cuts. During the shutdown, business activity slowed and federal employee pay was suspended, putting pressure on consumption, the service sector, and financial markets. Budget freezes in several departments also led to flight delays and postponed food inspections, causing tangible disruptions to daily life.

With Congress reaching an agreement, federal agencies are expected to gradually resume operations, and delayed economic data will be released in the near term. In the short run, as some fiscal disputes remain unresolved, markets are likely to stay cautious toward federal policy, with business investment and export growth expected to ease to around 0.7%. Over the medium term, as long as fiscal gridlock does not recur, economic activity is expected to regain momentum, and markets will closely monitor future developments in taxation and healthcare policy.

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